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Be Our Guest

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Issue:

Business

 

Written by:

Ezra F

 

Date added:

June 18, 2015

 

Level:

 

Grade:

A

 

No of pages / words:

2 / 321

 

Was viewed:

9767 times

 

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Essay content:

There was tremendous seasonality in their business, as the business was fast during the fall and winter holiday seasons, and during the early summer months when wedding receptions and parties flourished. Because of the seasonality, it was difficult for the company to develop annual projections of revenues...
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Also many of their clients aren’t able to pay them right away which means they built up a large number of receivables on their balance sheet. In the spring of 1998, the company was reviewing their financial plans in preparation for a meeting with State Street Bank. Their initial borrowing arrangement with the bank consisted of two parts, a $100,000 line of credit and a $390,000 five-year term loan...
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